Microsoft’s sophisticated relationship with OpenAI is about to take an fascinating flip. Because the pair proceed to renegotiate a contract to permit OpenAI to restructure right into a for-profit firm, OpenAI is getting ready to launch an open language AI mannequin that might drive much more of a wedge between the 2 firms.
Sources aware of OpenAI’s plans inform me that CEO Sam Altman’s AI lab is readying an open-weight mannequin that can debut as quickly as subsequent week with suppliers different than simply OpenAI and Microsoft’s Azure servers. OpenAI’s fashions are usually closed-weight, which means the weights (a kind of coaching parameter) aren’t out there publicly.
The open nature of OpenAI’s upcoming language mannequin means firms and governments will be capable to run the mannequin themselves, very similar to how Microsoft and different cloud suppliers rapidly onboarded DeepSeek’s R1 mannequin earlier this yr.
I perceive this new open language mannequin will likely be out there on Azure, Hugging Face, and different giant cloud suppliers. Sources describe the mannequin as “much like o3 mini,” full with the reasoning capabilities which have made OpenAI’s newest fashions so highly effective. OpenAI has been demoing this open mannequin to builders and researchers in current months, and it has been brazenly soliciting suggestions from the broader AI neighborhood.
I reached out to OpenAI to touch upon the upcoming arrival of its open mannequin, however the firm didn’t reply in time for publication.
It’s the primary time that OpenAI has launched an open-weight mannequin since its launch of GPT-2 in 2019, and it’s additionally the primary time we’ve seen an open language mannequin from OpenAI because it signed an unique cloud supplier settlement with Microsoft in 2023. That deal means Microsoft has entry to most of OpenAI’s fashions, alongside unique rights to promote them on to companies by its personal Azure OpenAI companies. However with an open mannequin, there’s nothing to cease rival cloud operators from internet hosting a model of it.
As I revealed in Notepad final month, there’s an advanced revenue-sharing relationship between Microsoft and OpenAI that includes Microsoft receiving 20 % of the income that OpenAI earns for ChatGPT and the AI startup’s API platform. Microsoft additionally shares 20 % of its Azure OpenAI income immediately with OpenAI. This new open mannequin from OpenAI will doubtless have an effect on Microsoft’s personal AI enterprise. The open mannequin may imply some Azure prospects received’t want pricier choices, or they might even transfer to rival cloud suppliers.
Microsoft’s profitable exclusivity cope with OpenAI has already been examined in current months. Microsoft “advanced” its OpenAI deal earlier this yr to permit the AI lab to get its personal AI compute from rivals like Oracle. Whereas that was restricted to the servers used for constructing AI fashions, this new open mannequin will lengthen far past the boundaries of ChatGPT and Azure OpenAI. Microsoft nonetheless has first proper of refusal to supply computing assets for OpenAI, nevertheless it has no management over an open language mannequin.
OpenAI is getting ready to announce the language mannequin as an “open mannequin,” however that terminology, which frequently will get confused with open-source, is sure to generate lots of debate round simply how open it’s. That can all come all the way down to what license is connected to it and whether or not OpenAI is keen to supply full entry to the mannequin’s code and coaching particulars, which might then be absolutely replicated by different researchers.
Altman stated in March that this open-weight language mannequin would arrive “within the coming months.” I perceive it’s now due subsequent week, however OpenAI’s launch dates usually change just like the wind, in response to improvement challenges, server capability, rival AI bulletins, and even leaks. Nonetheless, I’d anticipate it to debut this month if all goes effectively.
- Microsoft is shedding as many as 9,000 workers. Lower than two months after shedding 6,000 workers, Microsoft introduced additional cuts that can affect as many as 9,000 workers. That’s 15,000 those that have misplaced their jobs at Microsoft in simply two months, taking the quantity near Microsoft’s largest job cuts ever. The state of affairs will get much more grim once you take a look at the final couple years, the place Microsoft has had a number of rounds of layoffs and even performance-based cuts which have significantly hit morale. Lots of the layoffs have appeared so random that they’ve unnerved workers, in accordance with a number of Microsoft staff I’ve spoken to. The newest layoffs have impacted gross sales and advertising and marketing groups, and led to canceled Xbox video games, a studio closure, and steep reductions at Microsoft’s Forza Motorsport developer. I fear that that is the brand new norm for Microsoft, because the layoffs don’t appear to be slowing down whereas the corporate continues to ramp up its AI investments. Please attain out to me anonymously on Sign if you already know extra particulars about the place Microsoft’s current layoffs have hit.
- Laid-off staff ought to use AI to handle their feelings, says Xbox producer. Xbox Recreation Studios government producer Matt Turnbull had some phrases of recommendation for his former colleagues final week: search recommendation from AI chatbots. In a peculiar, now-deleted LinkedIn put up, Turnbull suggested the 9,000 affected workers to make use of ChatGPT or Copilot “to assist cut back the emotional and cognitive load that comes with job loss” and assist with profession planning or updating a resume. Whereas I’m positive Turnbull had good intentions along with his put up, artistic industries like gaming are grappling with the potential affect of AI and other people actually don’t wish to be reminded of AI chatbots once they’ve simply misplaced their jobs.
- Microsoft Groups now has threaded conversations. Microsoft is lastly rolling out threads in Groups channels. Groups customers will be capable to both create posts or threads in a single channel, however, confusingly, it looks as if Groups channel homeowners must choose a structure of both posts or threads, relying on how a channel is used. Whereas Microsoft has mixed the chats and channels expertise in Groups, I nonetheless hear from common customers that most individuals simply use group DMs as a substitute of channels. I want Microsoft would make the chat expertise of Groups extra like Slack, the place DMs are reserved for largely 1:1 or very small group discussions, and channels are the go-to for initiatives and bigger conversations.
- Microsoft and OpenAI are coaching lecturers. Microsoft, OpenAI, and Anthropic have funded a $23 million coaching hub that can prepare lecturers the right way to use AI instruments. It’s a part of a “Nationwide Academy for AI Instruction,” which is able to present free entry and coaching to the practically 2 million members of the American Federation of Lecturers.
- Microsoft’s Copilot Plus options may arrive on desktop PCs later this yr. I’ve been ready to see when Home windows 11’s new AI options would seem on true desktop PCs, and it seems like that’s about to begin later this yr. Intel is reportedly planning a refresh of its Arrow Lake CPUs within the second half of 2025, and the massive change will likely be a extra superior NPU that needs to be able to Copilot Plus options. I haven’t been massively impressed with the Home windows AI options but, other than the AI-powered search enhancements that make it loads simpler to search out information and paperwork on a Copilot Plus PC.
- Microsoft’s Edge browser now masses websites even quicker. Microsoft says it has “reached a serious milestone” for its Edge browser UI pace. It now takes Edge lower than 300 milliseconds to begin rendering the primary elements of an internet site, which means websites load even quicker. I’ve at all times been a fan of Microsoft’s Edge browser, nevertheless it’s nonetheless struggling to compete with Chrome’s dominant market share, regardless of all of the annoying tips that Microsoft employs to get individuals to make use of Edge.
- Home windows 11 has lastly overtaken Home windows 10 as essentially the most used desktop OS. It’s been practically 4 years since Home windows 11 first debuted, and it has lastly crossed an essential milestone. Stat Counter now lists Home windows 11 because the most-used model of the working system, with 52 % of the market in comparison with round 44 % for Home windows 10. The adoption of Home windows 11 has been sluggish in comparison with Home windows 10, which might be due to Microsoft’s stricter {hardware} necessities. Now that the Home windows 10 finish of assist date is nearing (October 14th), companies are racing to get upgraded in time.
- Microsoft Authenticator is ending assist for passwords. In case you use the Authenticator app to retailer or autofill passwords, Microsoft is beginning to take away this performance this month. You’ll have to make use of Microsoft Edge or one other password administration answer as a substitute, as Authenticator goes again to fundamental multifactor authentication as a substitute. Microsoft added assist for password storage in Authenticator in 2020, and passwords will now not be accessible within the app in August.
- Microsoft is testing tighter integration with 1Password’s passkeys in Home windows. 1Password is a superb various if you happen to depend on password storage in Authenticator, and it’s getting even higher assist inside Home windows 11. Microsoft is now testing 1Password passkey integration in Home windows 11, permitting apps utilizing passkeys and the OS to combine neatly into the password supervisor identical to iOS or Android.
- Microsoft’s Xbox PC launcher will get going with Steam, Epic, and different video games exhibiting up. The brand new aggregated gaming library within the Xbox PC app debuted late final month for testers, and it means Steam, Battle.internet, Ubisoft, Epic Video games, and Riot Video games titles are all now showing within the Xbox app. You need to use this app to launch these video games simply as you’d from their native launcher, very similar to GOG Galaxy. It’s all a part of an early check for the broader Home windows handheld enhancements which might be arriving later this yr.
- The Xbox 360 dashboard simply bought up to date… to promote newer Xboxes. Microsoft fastened a problem with field artwork on the Xbox 360 late final month, nevertheless it additionally added some sizable advertisements for its newest Xbox Sequence S / X consoles on the primary web page of the Xbox 360 dashboard. Clicking the advertisements does nothing, and also you’ll want to make use of a smartphone or pill to scan the QR code that takes you to a URL to improve to the most recent Xbox fashions.
- Activision pulls Name of Obligation sport after PC gamers are hacked. A number of PC gamers leaping again into the 2017 shooter Name of Obligation: WWII have reported that their PCs have been compromised by hackers after enjoying the sport. Activision eliminated the Microsoft Retailer model of the sport on Friday, which was reportedly an outdated model that had a distant code execution flaw that has since been patched. This needs to be a large wake-up name to Microsoft over the state of the Recreation Move variations of PC video games. It’s a daily incidence that video games within the Microsoft Retailer are older variations or have lacking options, and that might have a devastating impact on some customers.
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